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August 17, 2023

Dear Fellow Shareholders,

Over the past three calendar quarters, I have referenced in my shareholder letters and reports the ancient Latin question of “Quo Vadis” meaning “Where are you going?” To me, this is a most appropriate question at this critical point in time for banking. It appears that many bankers are not so sure of the path forward in today’s challenging economic and banking climate.

For our Bank, our path remains constant and straightforward. As I told you in my last shareholder letter, we believe that our Bank has a “fortress balance sheet” which we believe makes us “Too Strong to Fail.” Our fortress balance sheet is our springboard to future growth.

I am pleased to report that our Bank had its first quarterly operating profit from its core operations. There were some large, mostly offsetting, unusual items in this calendar quarter such as our $872,000 pre-tax loss on the sale of securities in April and our recognition of a $882,000 deferred tax asset. In our regular quarterly Call Report filed with the Federal Financial Institutions Examination Council (that is required of all banks), we reported Quarterly Operating Income after Tax of $27,000, and after the adjustments, an unaudited quarterly profit of $13,000. This profit is broken down as follows:

                                                  Quarterly Operating Income after Tax:                                          $   27,000
                                                  Recognition of Deferred Tax Asset:                                                  882,000
                                                  Loss on Sale of Securities:                                                               (872,000)
                                                  Miscellaneous Adjustments from Prior Quarters:                          (24,000)
                                                  Reported Quarterly Income:                                                           $    13,000       

Now that we have a very sound Bank that is essentially at breakeven, the question returns to “Quo Vadis?” Our Board of Directors and I have given this question much thought and have concluded that we must recruit several proven banking business development executives for loans and/or deposits to accelerate our growth. We recognize that over the short term the additional compensation expense from these new executives will negatively impact our Bank’s profitability. We believe that investment will result in the Bank’s income from the production by these new executives of new loans and deposits to first offset and then exceed the incremental compensation expense for these new executives. We believe that now is the time to grow our Bank more quickly than we can with our current staffing.

I also have a new initiative to report. We have created a Strategic Advisory Council consisting of some of our Bank’s substantial clients to advise the Bank on new business opportunities and possible improvements to our Bank’s lending and deposit operations. The Strategic Advisory Council will meet with our Bank’s senior management quarterly, contemporaneously with the quarterly meetings of our Founders Board.


The inaugural members of our Strategic Advisory Council are:

Dwayne Furlough of Marlin Electronics
Eddie Hewitt of Viridian Homes
Todd Jared of Lin-Con Homes
Matt Kantro of Noble Title & Escrow
Ted Kaufman of Davenport & Company
Sidney Kellam of Ware Insurance
Rich Meredith of Meredith Management
Russell Payne of Ron Zoby Tours

We are pleased and proud that these successful business persons from diverse lines of business have agreed to serve as inaugural members of our new Strategic Advisory Council. As our Bank grows, we expect to add other substantial clients of our Bank to our Strategic Advisory Council.

Let’s grow our Bank!


Michael S. Ives
President and Chief Executive Officer
Integrity Bank for Business


The above letter from the CEO of Integrity Bank for Business (the “Bank”) may contain “forward looking statements” regarding future events and future results of the Bank. Forward-looking statements can be identified by words such as “anticipates,” “estimates,” “intends,” “plans,” “believes,” “projects,” “will,” “expects,” “may,” and similar references to future periods. Forward-looking statements are neither historical facts nor assurances of future performance, but are based only on the Bank’s current beliefs, expectations, and assumptions regarding the future of its business, plans and strategies, projections, anticipated events and trends, the economy, and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks, and changes in circumstances that are difficult to predict and outside of the Bank’s control. The Bank’s actual results and financial condition may differ materially from those indicated in forward-looking statements, and therefore you should not rely on forward-looking statements. Any forward-looking statement made by the Bank is based only on information available to the Bank as of the date on which it is made, and the Bank has no obligation to update any forward-looking statement, whether as a result of new information, future developments or otherwise.

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